|Tax Credits Available to Help Businesses Grow
The Illinois Department of Commerce and Economic Opportunity (DCEO) offers a variety of tax incentive programs to help businesses lower their costs in an effort to create new jobs. First and foremost, the Economic Development for a Growing Economy Tax Credit Program (EDGE) is designed to offer a special tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another State. The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non- refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years. To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois.
The Illinois Enterprise Zone Program is also designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. This is accomplished through state and local tax incentives, regulatory relief, and improved governmental services. Tax incentives available under this program include a sales tax exemption on building materials for businesses located in an Enterprise Zone, an Investment Tax Credit of .5%, and a Jobs Tax Credit of $500 per qualified employee. The Investment Tax Credit and Jobs Tax Credit can be carried forward for up to five years.
By helping businesses lower their costs, the Illinois Department of Commerce and Economic Opportunity is helping create jobs throughout the state. For more information about state programs to assist businesses, feel free to contact me at (618) 993-7232 or by email at firstname.lastname@example.org.
Business Development Representative
Illinois Department of Commerce & Economic Opportunity
2309 W. Main Street, Suite 124
Marion, IL 62896
Phone: (618) 993-7232
Fax: (618) 993-7648